- Joined
- Nov 17, 2015
- Messages
- 13,950
tl;dr version: FA's are bad, Index funds good. Nice commentary, mixed with comedy, about how fees are structured in most retirement plans, and some legislative changes coming next year.
....BTW my avg expense is .07 for the 18 funds I own, or 30% less than the 1% mark. ...
My old company used Hancock for the 401 too. I never looked at the fees.
Why bother? What can be done? It wasn't like we were a big outfit, only 40 people.
My old company used Hancock for the 401 too. I never looked at the fees.
Why bother? What can be done? It wasn't like we were a big outfit, only 40 people.
My old company used Hancock for the 401 too. I never looked at the fees.
Why bother? What can be done? It wasn't like we were a big outfit, only 40 people.
And this is what employees should do even if they are getting screwed by the plan. In most cases the small company gets kickbacks in the way of free HR services from companies in exchange for the higher fees so companies have good incentives to go with high fee firms.That 401 was still a killer deal though. My Co matched 50% of your first 4% (of salary) and 25% of your next 4%, so if you did 8% it was like giving yourself a 3% raise. I was in for the max and it hardly made any difference in my paycheck due to the tax benefits.
Even with high fees you are better off maxing the 401 especially if there is profit sharing involved.
JO fan here as well. The problem is, the people who need this advice will not have the patience or tolerence to sit through the twenty minutes of excellent and accurate information.
That 401 was still a killer deal though. My Co matched 50% of your first 4% (of salary) and 25% of your next 4%, so if you did 8% it was like giving yourself a 3% raise. I was in for the max and it hardly made any difference in my paycheck due to the tax benefits.
Even with high fees you are better off maxing the 401 especially if there is profit sharing involved.